The correction in broader markets was higher than benchmark indices as the Nifty Midcap and Smallcap indices fell around 2 percent each on July 19 and around 4 percent each for the week.
The sharp fall for second consecutive session not only dragged the market to its two-month low on July 19, but also got it into negative territory for the week due to some disappointment over earnings, and unhappiness among FPIs after the Finance Minister refused to tweak the surcharge on the super-rich.
The BSE Sensex was down 560.45 points at 38,337.01, while the Nifty50 plunged 177.60 points to 11,419.30 on selling across sectors. Both benchmark indices fell a percent each for the week.
The index formed a bearish candle on daily as well as weekly scale, indicating bears are having the upper-hand on the Street, which could drag the index below 11,300 level, if it decisively breaks 11,400, which it managed to hold while closing on Friday, experts feel.
"The breach of a key rising trend line (placed at 11,530) and a lack of faster retracement of preceding declining legs makes us believe that the Nifty is heading towards 11,300 level, while stock-specific action would continue as we sail through Q1 FY20 earnings and derivatives expiry of July 2019 series," Dharmesh Shah, Head – Technical, ICICI direct told Moneycontrol.
"Another key observation is that, for the first time since October 2018, the index has retraced its preceding major rally by more than 61.8 percent, indicating extended consolidation going ahead. This development, coupled with the shallow nature of pullbacks, led us to believe that 11,600-11,650 will act as a key hurdle going forward as it is the low of Exit poll session and recent breakdown area," he said.
The correction in broader markets was higher than benchmark indices as the Nifty Midcap and Smallcap indices fell around 2 percent each on Friday and around 4 percent each for the week.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,419.25 on July 19. According to the pivot charts, the key support level is placed at 11,332.23, followed by 11,245.27. If the index starts moving upward, the key resistance levels to watch for out are 11,573.23 and 11,727.27.
The Nifty Bank closed at 29,770.35, down 660.25 points on July 19. The important pivot level, which will act as crucial support for the index, is placed at 29,469.47, followed by 29,168.63. On the upside, key resistance levels are placed at 30,307.47, followed by 30,844.63.
Call options data
Maximum Call open interest (OI) of 35.17 lakh contracts was seen at the 11,600 strike price. It will act as a crucial resistance level in the last week of the July series.
This is followed by 11,700 strike price, which now holds 34.40 lakh contracts in open interest, and 12,000, which has accumulated 30.62 lakh contracts in open interest.
Significant Call writing was seen at the 11,500 strike price, which added 24.14 lakh contracts, followed by an 11,600 strike price, which added 17.50 lakh contracts. This was followed by 11,400 strike, which added 5.66 lakh contracts.
Call unwinding was seen at 12,000 strike, which shed 4.09 lakh contracts, followed by 11,900 strike, which shed 2.56 lakh contracts and 11,000 strike, which shed 1.19 lakh contracts.
Put options data
Maximum Put open interest of 30.44 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for last week of the July series.
This is followed by an 11,400 strike price, which now holds 26.59 lakh contracts in open interest and a 11,000 strike price, which has now accumulated 18.78 lakh contracts in open interest.
Put writing was seen at the 11,400 strike price, which added 7.69 lakh contracts, followed by an 11,100 strike which added 4.65 lakh contracts and 11,300 strike, which added 4.38 lakh contracts.
Put unwinding was seen at the 11,600 strike price, which shed 10.25 lakh contracts, followed by an 11,500 strike that shed 6.43 lakh contracts and an 11,700 strike price which shed 3.37 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.
9 stocks saw a long buildup
8 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
69 stocks saw a short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
75 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Shalby: The company will announce its June quarter earnings on July 29.
KPR Mill: The company will announce its June quarter earnings on July 29.
Sun Pharma Advanced Research: The company will announce its June quarter earnings on July 29.
Jaypee Infratech: The company will announce its June quarter earnings on July 27.
Jaiprakash Power Ventures: The company will announce its June quarter earnings on July 27.
Eris Lifesciences: The company will announce its June quarter earnings on July 27.
Punjab National Bank: The company will announce its June quarter earnings on July 26.
Bank of Maharashtra: The company will announce its June quarter earnings on July 29.
BF Utilities: The company will announce its June quarter earnings on July 31.
Jagran Prakashan: The company will announce its June quarter earnings on July 31.
GMDC: The company will announce its June quarter earnings on August 3
HDFC Life Insurance Company: The company will be hosting an earnings conference call with analysts and investors on July 23 to discuss the financial results for the quarter ended June 2019.
Stocks in news
Results on July 22: Kotak Mahindra Bank, United Spirits, Lakshmi Machine Works, Dewan Housing Finance Corporation, Oriental Bank of Commerce, Can Fin Homes, Hindustan Media Ventures, TVS Motor Company, Aptech, ICICI Securities, Just Dial, GlaxoSmithKline Pharmaceuticals, Just Dial, Wendt (India), Cupid, Mastek, Coromandel International, Allsec Technologies, Srikalahasthi Pipes.
Reliance Industries Q1: Consolidated profit falls 2.5 percent to Rs 10,104 crore versus Rs 10,362 crore, revenue rises 13.2 percent to Rs 1.57 lakh crore versus Rs 1.38 lakh crore QoQ.
Reliance Jio Q1: Profit rises 6.1 percent to Rs 891 crore versus Rs 840 crore, revenue climbs 5.2 percent to Rs 11,679 crore versus Rs 11,106 crore QoQ.
Reliance Industries: Brookfield to invest Rs 25,215 crore in units by Tower Infrastructure Trust. Reliance Industrial Investments & Holdings holds 51 percent stake in Tower Infrastructure Trust.
Reliance Industries: The company will merge Reliance Holding USA Inc and Reliance Energy Generation and Distribution Limited with itself.
HDFC Bank Q1: Profit grows 21 percent to Rs 5,568.2 crore versus Rs 4,601 crore, NII jumps 22.9 percent to Rs 13,294 crore versus Rs 10,813.6 crore YoY; gross NPA rises to 1.40 percent versus 1.36 percent and net NPA increases to 0.43 percent versus 0.39 percent QoQ.
Future Lifestyle Q1: Profit falls to Rs 24.5 crore versus Rs 26.6 crore, revenue rises 16.8 percent to Rs 1,540.3 crore versus Rs 1,318.9 crore YoY.
Amara Raja Batteries Q1: Standalone profit jumps 24.7 percent to Rs 140.9 crore versus Rs 113 crore, revenue rises 2 percent to Rs 1,814.9 crore versus Rs 1,778.7 crore YoY.
L&T Technology Services Q1: Profit rises 6.5 percent to Rs 204 crore versus Rs 191.5 crore, revenue increases 0.3 percent to Rs 1,347.5 crore versus Rs 1,343.1 crore QoQ.
L&T Finance Holdings Q1: Profit increases 2 percent to Rs 549 crore versus Rs 538 crore, revenue rises 15.7 percent to Rs 3,595 crore versus Rs 3,106 crore YoY.
InterGlobe Aviation Q1: Profit surges to Rs 1,203 crore versus Rs 27.8 crore, revenue jumps 44.7 percent to Rs 9,420.1 crore versus Rs 6,512 crore YoY.
Avanti Feeds Q1: Profit rises to Rs 92.96 crore versus Rs 85.67 crore; revenue increases to Rs 1,093.5 crore versus Rs 1,040.2 crore YoY.
Dabur told CNBC-TV18: Company has Rs 50 crore exposure each to DHFL and Reliance Home Finance.
Jet Airways: The companuy's Resolution Professional invites expression of interest for the airline, whose last date of receipt is set for August 3.
June Aviation Data: IndiGo passenger load factor at 90.1 percent against 90.9 percent and its market share is at 48.1 percent versus 49 percent; SpiceJet passenger load factor at 93.7 percent versus 93.9 percent and its market share is at 15.6 percent versus 14.8 percent MoM.
Cipla: United States Food and Drug Administration (USFDA) conducted a routine cGMP inspection at its API manufacturing facility in Bengaluru and issued seven observations, none of which were repeat or related to data integrity.
CG Power and Industrial Solutions: The company bagged a contract for building a 400 MW wind farm in Saudi Arabia.
Strides Pharma: The company announced the successful completion of US FDA inspection at its flagship facility in Bangalore, with a Voluntary Action Indicated (VAI) classification.
Edelweiss Financial Services: CRISIL re-affirmed its credit rating of A1+ assigned to the short term borrowing programmes of the company.
Vodafone Idea: Board of Directors of associate company Aditya Birla Idea Payments Bank approved the voluntary winding up of itself due to unanticipated developments in the business landscape that have made the economic model unviable.
Dr Reddy's Laboratories: The company sold its US and select territory rights for Zembrace Symtouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg, which were commercialized through its wholly-owned subsidiary, Promius Pharma, LLC, to Upsher-Smith Laboratories, LLC.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 950.15 crore, but Domestic Institutional Investors (DIIs) bought Rs 733.92 crore worth of shares in the Indian equity market on July 19, as per provisional data available on the NSE.
Fund Flow Picture
Four stocks under F&O ban period on NSE
For July 22, DHFL, IDBI Bank, Reliance Capital and Reliance Infrastructure are under the F&O ban period.
Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.
Out of F&O Ban: Tata ElxsiDisclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.